The Rise of Digital Advertising: Stocks to Keep an Eye On

News Summary

The global digital marketing industry is set to grow exponentially, with projections showing it will reach $1.19 trillion by 2033. Key players like Thryv Holdings, The Trade Desk, and HubSpot are making significant moves and showcasing impressive financial performance, making them prime investment targets for 2025.

The Rise of Digital Advertising: Stocks to Keep an Eye On

Hey there, fellow investors and digital marketing enthusiasts! If you’ve been keeping track, you might have noticed that the global digital marketing industry is on a serious upward trend. It’s projected to skyrocket from a whopping $410.70 billion in 2024 to an astounding $1.19 trillion by 2033, boasting a compound annual growth rate (CAGR) of 11.2%. That’s huge! But what does this mean for investors who are looking to jump into this thriving space? Let’s chat about some stellar stocks that are worth your attention in 2025.

Thryv Holdings, Inc. (THRY)

First up is Thryv Holdings, Inc. (THRY). This company specializes in offering digital marketing solutions tailored specifically for small-to-medium businesses. Their services cover everything from customer relationship management (CRM) to search engine optimization (SEO), digital advertising, appointment scheduling, and payment processing.

Recently, on October 31, 2024, THRY made a big move in the industry by acquiring Infusion Software, Inc. (Keap) for $80 million in cash. This acquisition is expected to supercharge their Software as a Service (SaaS) offerings, enhancing the value they provide to their customers.

Looking at their financials for the fiscal third quarter ending September 30, 2024, THRY reported revenues of $179.85 million, with an adjusted gross profit of $116.84 million, which is a 5.6% year-over-year increase. They also saw an impressive rise in adjusted EBITDA, hitting $19.62 million, showcasing a whopping 167.7% increase compared to last year. As for the future, analysts are optimistic about THRY’s performance, expecting their earnings per share (EPS) and revenue for Q4 2024 to see a massive jump, expecting a 97.9% growth year-over-year.

The Trade Desk, Inc. (TTD)

Next on our list is The Trade Desk, Inc. (TTD). This company provides an innovative cloud-based platform for managing digital advertising campaigns. Their technology helps advertisers optimize their campaigns in real time, making them a favorite among marketers.

In an exciting development, TTD’s stockholders approved a reincorporation from Delaware to Nevada on November 14, 2024. Now, looking at their performance, TTD’s Q3 2024 revenue saw a substantial 27.3% growth, reaching $628.02 million, while income from operations rocketed up 187.9% to $108.48 million. But wait, it gets even better! For Q4 2024, TTD is expecting revenue to jump a further 25.3% to $759.32 million.

If you’re wondering about stock performance, TTD has recorded a fantastic 27.1% gain in the last six months and an incredible 65.3% rise over the past year, closing at $121.67.

HubSpot, Inc. (HUBS)

Last but definitely not least, we have HubSpot, Inc. (HUBS). This company boasts a comprehensive cloud-based CRM platform complete with marketing, sales, customer service, and operational tools. They focus particularly on mid-market B2B businesses, catering specifically to their unique needs.

In a move to enhance their services, HUBS acquired Cacheflow on October 30, 2024, and integrated it into their Commerce Hub. As for their performance in Q3 2024, HUBS reported a robust revenue increase of 20.1% year-over-year, totaling $669.72 million. Their non-GAAP operating income also climbed by 35.9% to $125.21 million.

Analysts expect HUBS to maintain this momentum into Q4 2024, with revenue anticipated to hit $673.96 million (up 15.8%) and EPS anticipated to soar by 24.8% to $2.20. Their stock has also seen a considerable boost, with a 24.6% increase over the past six months and a 22.3% rise over the last year, closing at $714.96.

Final Thoughts

As we stand on the brink of an evolving digital marketing landscape, these three stocks—Thryv Holdings (THRY), The Trade Desk (TTD), and HubSpot (HUBS)—are prime candidates for investment. With their strong growth potential and innovative services, they’re definitely worth keeping an eye on. Happy investing!

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Additional Resources

• Thryv Holdings, Inc.
• The Trade Desk, Inc.
• HubSpot, Inc.
• MarketWatch
• Reuters